FX.co ★ New Zealand Stocks Muted in Morning Trade

The NZX 50 index experienced marginal activity, hovering around 12,958 in early Tuesday trading. This stability followed a peak it reached the previous day, marking its highest since February. Gains in the communication services and financial sectors managed to counterbalance declines in the healthcare and consumer staples sectors. Investors were digesting Monday’s inflation report, which indicated that inflation had eased quarterly yet accelerated to an annual rate of 2.7% in the second quarter. This figure, while below the anticipated 2.8%, stayed within the Reserve Bank of New Zealand's target range of 1–3%. Uncertainty surrounding ongoing US trade negotiations with global partners added an element of caution to the market. Positively, record highs for the S&P 500 and Nasdaq in the US boosted market confidence. On the downside, New Zealand’s trade surplus diminished to five-month low of NZ$0.1 billion in June, falling significantly below the expected NZ$1 billion. Notably, Infratil and Mainfreight both saw increases of 0.7%, while SKT TV experienced a 4.5% surge following its agreement to wholly acquire TV3 owner, Discovery NZ. Conversely, Gentrack Group declined by 1.9%, and Fisher & Paykel slipped by 0.5%.